Should I sell my home or rent it out?
Enter the home’s value and mortgage, the rent it could earn and its monthly costs, then your expectations for prices and investments. The result compares your wealth at the end of the period either way.
Your estimate
What the calculator assumes.
Change of use. Renting out your whole home is normally treated as selling it at fair market value and buying it back. With the subsection 45(2) election you skip that, cannot claim capital cost allowance, and can keep designating the home as your principal residence for up to four years if you do not designate another one. Source: CRA, principal residence. The calculator taxes the growth after those years at half your marginal rate.
Simplified. Income tax on the rent, the tax on investment returns and the cost of becoming a landlord’s time are left out. See the rental income tax calculator and the capital gains on property calculator, and talk to a tax professional before you decide.